MILAN, Italy (March 11, 2011)—Pirelli & C. S.p.A.'s board of directors has raised the firm's sales goal for fiscal 2011 nearly 8 percent to more than $7.2 billion after reporting 19.2-percent sales growth last year.
The board also cautioned customers that price increases this year “will be sharper than initially planned and aimed at recovering the cost difference” brought on by higher-than-foreseen increases in raw materials costs in recent weeks.
Pirelli said it expects to achieve 8-percent revenue growth via unit volume growth of 6 percent and an improved price/mix component of about 12 percent. Both components are measurably higher than those laid out last November, the firm said.
The company expects to achieve its previously released pre-tax operating income goals of 8.5 to 9.5 percent of sales based on the positive effects of its cost-efficiency plan begun last year.
Capital investments are seen rising 23.5 percent to more than $700 million.